Core Scientific Reallocates 300MW From Bitcoin Mining to AI Data Center Buildout in Texas

Core Scientific is accelerating a shift away from Bitcoin mining as it targets rising demand for AI and high-performance computing. The company said it is redirecting substantial power capacity to AI-focused infrastructure at its Texas operations. The transition is centered on its Pecos site, which Core Scientific is developing into a large-scale data center campus built for intensive AI workloads. The company plans to expand the site to as much as 1.5 gigawatts of total power capacity, with about 1 gigawatt expected to be available for lease to third-party customers seeking scalable AI compute. Core Scientific has already begun repurposing existing mining capacity to support the buildout. Roughly 300 megawatts previously dedicated to Bitcoin mining are being converted to data center operations, highlighting the company's ability to adapt installed infrastructure. Construction is progressing, with the first data hall completing foundational work and moving into vertical construction. Initial capacity is expected to come online in early 2027. Beyond Texas, Core Scientific is pursuing additional energy and real estate to support longer-term expansion. The company has secured another 300 megawatts under contract with its utility provider and is evaluating behind-the-meter power solutions aimed at improving efficiency and cost control. It has also acquired more than 200 acres of land in the region to preserve expansion flexibility as demand grows. To fund these capital-intensive projects, Core Scientific outlined plans to raise $3.3 billion through senior secured notes due in 2031, following a $1 billion credit facility arranged earlier this year. The company said the financing will support expansion across Texas, Georgia, North Carolina and Oklahoma. The pivot reflects a broader trend across the crypto mining industry. Firms including MARA, Hive, Hut 8 and TeraWulf are increasingly converting mining operations into AI-oriented data centers, adapting crypto infrastructure to advanced computing needs and diversifying revenue beyond traditional mining. Core Scientific's move underscores how mining operators are repositioning for long-term growth as demand for computing power continues to climb.